Hess To Report Four Wells Today; WPX Will Report One -- May 12, 2020

OPEC basket: $22.21, down 71 cents. Amazing. And this was after bullish oil news yesterday: demand up, and OPEC+ agrees to cut production. Meanwhile, WTI is up 5.22%, up $1.26.

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Back to the Bakken

Hess: has only one rig operating in the Bakken. 

Active rigs:

$25.40	5/12/2020	05/12/2019	05/12/2018	05/12/2017	05/12/2016
Active Rigs	18	66	60	51	27

Wells coming off the confidential list today  -- Tuesday, May 12, 2020: 37 for the month; 87 for the quarter, 314 for the year:

• 36635, drl, WPX, Nighthawk 6-34HT, Heart Butte, no production data,
• 36256, 1,634, Hess, RS-Harstad-155-91-0433H-4, Stanley, t11/19; cum 53K 3/20; 
• 36255, 1,666, Hess, RS-Harstad-155-91-0433H-5, Stanley, t11/19; cum 55K 3/20;
• 35708, 1,692, Hess, SC-Hoving-154-98-1003H-5, Stanley, t11/19; cum 85K 3/20;
• 35707, 2,444, Hess, SC-Hoving-154-98-1003H-6,Truax, t11/19; cum 119K 3/20;

RBN Energy: are we on the verge of a propane supply shortage? Are you kidding me! Not again!

During the last two weeks of April, a barrel of propane in Mont Belvieu was more expensive than a barrel of WTI crude oil in Cushing. That’s never happened before. You might think that such an aberration could be blamed on the wacky April-May 2020 COVID crude market, but that is only part of the story. Propane production is falling and pre-COVID projections of continued supply growth are out the window.

But new gas processing plants, pipelines, fractionation facilities, dock capacity and downstream demand have come online in recent years, in anticipation of those ill-fated additional supplies. Already we are seeing flows, price relationships and differentials convulsing in response to the new reality, and projections of future supply/demand imbalances suggest a previously unthinkable possibility: a market that can’t get enough propane supply, especially if the winter of 2020-21 is a cold one. In today’s blog, we will explore the evidence of these market developments that is already visible and look to what may be ahead for propane supply and demand.